NCJ Number
214587
Journal
American Criminal Law Review Volume: 43 Issue: 2 Dated: Spring 2006 Pages: 739-761
Date Published
2006
Length
23 pages
Annotation
Following an overview of the Federal Money Laundering Control Act, this article explains the elements of the offenses defined in the act, defenses most likely to be used to answer charges under the act, and the penalties specified in the act.
Abstract
Money laundering is "the process by which one conceals the existence, illegal source, or illegal application of income, and disguises that income to make it appear legitimate." The Money Laundering Control Act of 1986 created liability for any individual who conducts a monetary transaction while knowing that the funds were derived through unlawful activity. The act's expansive definition of money laundering allows it to reach the proceeds of a broad range of illicit activities. One of the principal purposes of the act is to bar all monetary transactions in criminally derived property that exceed $10,000. It addresses domestic money laundering and participation in transactions that involve criminal proceeds, international money laundering and transportation of criminally derived monetary instruments in foreign commerce, and the use of government sting operations to expose criminal activity. The government must prove four elements to obtain a conviction under the act: knowledge, the existence of proceeds derived from a specified unlawful activity, a financial transaction, and intent. The defenses likely to be used to answer charges under the act are constitutional vagueness, double jeopardy, and the act's failure to meet the constitutional standard for Federal jurisdiction over the financial activities at issue. Penalties under the act can be both criminal and civil, with the criminal penalties consisting of imprisonment, fines, and forfeiture, depending on the type of offense. 152 footnotes